GNC Holdings Filed For Bankruptcy!
Vitamin and mineral producer US company GNC Holdings filed for bankruptcy due to its $ 900 million debt. The giant company, operating since 1935, was likely to close 800 to 1,200 stores. It has been learned that the company, which has been adversely affected by the economic effects of the Coronavirus (Covid-19) outbreak, has already been trying to cover its debt of $ 900 million. However, with the addition of the epidemic to this situation, the company granted 2 thousand 100 of its 11 thousand employees free of charge.
Possibility Selling of Company Speaking
Among the plans of the giant company GNC (General Nutrition Centers) is selling the company. GNC can either fully sell the company under the bilateral restructuring plan, or reorganize its balance sheet with the sale of over $ 300 million in debt. Stating that the company is being negotiated with Harbin Pharmaceutical Group for $ 760 million, GNC announced that it will receive $ 130 million in new financing from Harbin and International Vitamin Corp.
Stating that the company and its 16 subsidiaries are waiting for court protection, GNC CFO Triciia Tolivar explained that the impact of this situation on customers, employees, business owners and partners is minimized. GNC Holdings will continue to remain in the sector under section 11, “Chapter 11”, of the US bankruptcy law. If should the bankruptcy process be finalized, it will have gained time for structuring the debt to its creditors.
GNC Holdings, which has a total of 7,300 sales points, holds 5,200 of them in the USA. 1600 sales points operate as dealerships. Turkey has also been made in the dealership with sales in 50 countries.
The well-established company, which experienced a loss of $ 200.1 million in the first quarter of the year, closed 596 stores that performed poorly between 2018 and March 2020.